The main legal point established in the judgment is that the availability of an effective and efficacious alternate statutory remedy under the Act of 2002 precluded the court from granting indulgence in the writ petition under Article 226.

JUDGMENT :

1. The matter has been listed in the category of ‘for orders’. With the consent of learned counsel for the parties, the matter is heard finally today, itself.

2. Application filed by learned counsel for the petitioner for taking on record the amended cause title is allowed and the same is taken on record.

3. The present writ petition has been filed under Article 226 of the Constitution of India with the following prayer:-

“A. Allow the writ petition filed by the petitioner.

B. Declare the entire recovery proceeding initiated under Sec 13(2) vide notice dt 18/04/11 and consequently issued possession notices dt 16/05/13 & 31/05/13 and resultant notice for proclamation dt 10.11.13 and auction proceeding dt 13/12/13 illegal, arbitrary and of without jurisdiction.

C. Consequently quash and set aside the impugned demand notice dated 18/04/11, possession notices dt 16/05/13 & 31/05/13 and resultant notice for proclamation dt 10.11.13 and auction proceeding dt 13/12/13.

D. Restore the possession of auctioned property the industrial plot, machinery and plant of petitioner company.

E. Any other writ or direction that may be deemed fit, just and proper in the facts and circumstances of the case may kindly be issued in favour of the petitioner. Costs may kindly be awarded.”

4. Brief facts of the case are that the petitioner company took financial assistance from the respondent Bank and executed an agreement by which a term loan of Rs. 370 lacs, cash credit limit of Rs. 130 lacs and overdraft facility of Rs. 85 lacs was taken in order to secure the said credit facilities. The respondent bank created equitable mortgage of the industrial land situated at Plot No.96 and 97 of the industrial area at Gudli, Udaipur. The Central Government had promulgated a subsidy scheme for fertilizers industries to benefit the farmers under which the manufacturer of fertilizers is required to give concession to the agriculturist for sale of fertilizers, upon which, he can seek reimbursement of the said concession/subsidy from the Central Government. The petitioner had also submitted claim for reimbursement of subsidy for the month of August, 2009 and September 2009, however, the petitioner received subsidy belatedly in the month of May, 2010. The subsidy disbursement to the petitioner was withheld by the Department of Fertilizers to the tune of Rs. 377.50 lacs for the period 01/10/2009 to 31/07/2011. The respondent No.4, General Manager and the respondent No.3 the authorised officer issued a notice dated 18.04.2011 (Annexure-2) to the petitioner as well as to its guarantor under Section 13 (2) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as ‘the Act of 2002’) by directing the petitioner to deposit a sum of Rs.6,21,14,841/- within a period of 60 days from the receipt of the said notice dated 18.04.2011. The respondent bank and the petitioner company entered into a Tri-Partite Agreement on 17.08.2011 and since then, the petitioner company had been continuing with the manufacturing activities smoothly.

5. The respondent No.3 served upon the petitioner company a notice dated 01.02.2012 (Annexure-8) in Schedule 4 prescribed under Rule 8 (1) of Securitization Rules, 2002 while taking symbolic possession of the petitioner’s assets and possession of residential house. Thereafter, one corrigendum was published in both the papers that the possession taken by the respondents of the industrial establishment to the petitioner company has been withdrawn with immediate effect and thus, the proceedings initiated under Section 13(2) of the Act of 2002 came to an end. The petitioner company was served upon a notice dated 16.05.2013 (Annexure-11) referring to its earlier notice dated 18.04.2011 under Section 13(2) of the Act of 2002 intimating the petitioner company that the bank will take the possession of the property on 31.05.2013. Finally on 31.05.2013, a fresh notice under Section 13 (4)